SBI cuts MCLR by 35 bps

State Bank of India, the country’s largest lender, has reduced the marginal cost of fund-based lending rate (MCLR) by 35 basis points (bps) across all loan tenures. The new rate will come into effect from April 10.

With this cut, the one-year MCLR of SBI will be 7.4%.

“EMIs on eligible home loan accounts (linked to MCLR) will get cheaper by around ₹24 per ₹1 lakh on a 30-year loan,” SBI said.

The move comes after the Reserve Bank of India (RBI) reduced the repo rate by 75 bps in the last week of March.

The lender has also reduced the savings account deposits rate, the second such cut in a month and third cut since November 2019.

“In view of adequate liquidity in the system, SBI realigns its interest rates on savings bank deposits, with effect from April 15, 2020,” SBI said.

The new rate will be 2.75% for both savings account balance of less than ₹1 lakh and above ₹1 lakh.